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Should Microsoft Give Up on Devices and Stick to Software?

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Some might argue that Microsoft has yet to release a consumer/business device that has not flopped besides the XBOX. Their recent entry into the tablet market has been nothing short of a nightmare for the technology company, with bleak sales and now a lawsuit filed by investors, the transition to a device and service company is proving to be rocky one.

Though companies can and must evolve, the all or nothing approach Microsoft has taken over the last couple of years has many long time supporters thinking differently (and not in the Apple kind of way) about their relationship with the company. Microsoft continues to push a direct to market agenda, going so far as to telling partners to bring their customers to the Microsoft Store rather than reselling them Microsoft solutions.

This crass and pompous approach to resellers is driving resellers to new solution partnerships and leading what was once a loyal following away. The services side of Microsoft’s approach may be a smart one, however alienating the device manufacturers that helped build the software giant into what it is today is just pushing more of them to alternatives such as Android.

Many believe that Microsoft should do what it does best, and that would be software. As the company has been discontinuing more and more of its traditional software platforms this may not be the right move for them either. With less software being sold through traditional licensing models and less demand for retail boxed software, “as a Service” solutions make a lot more sense. This fits into their service company vision.

Microsoft should stick to the XBOX, continue with their services approach, drop the idea of being like Apple with devices, and revisit their community/channel initiatives. Without a major change in leadership (though there has been a lot of movement in executive circles as of late), it would be surprising to see them realize any of this and instead seem to be chasing the rabbit down the hole.


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